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Related Companies Expands into Data Centers with New Investments

In a significant move, Related Companies, one of the most prominent privately-owned real estate firms in the United States, has officially launched Related Digital, a new platform focused on data center development and investment. This initiative comes as the company aims to capitalize on the growing demand for digital infrastructure, particularly in the artificial intelligence (AI) and cloud technology sectors. With a development pipeline valued at an estimated $45 billion, Related Digital plans to provide innovative digital infrastructure solutions that cater to hyperscale technology companies.

The venture has already committed a minimum of $500 million to kickstart the development efforts, showcasing its confidence in the potential of this evolving market. Furthermore, Related Digital is looking to raise up to $8 billion in private capital, with Morgan Stanley advising on the initial phase of this financing initiative. The funds raised will support the development of critical infrastructure to meet the needs of industry leaders in tech.

Brent Behrman has been appointed as the Chief Investment Officer of Related Digital, bringing a wealth of experience in data center development, engineering, and sales. His role is pivotal as he collaborates with Related Companies' CEO, Jeff T. Blau, to shape the future of the data center initiatives under this new platform. Greg Myers has also joined as Chief Financial Officer, adding his expertise from Vista Equity Partners to the team.

Related Digital combines more than 50 years of Related Companies’ experience in complex real estate and infrastructure projects. This knowledge is paired with specialized skills in clean energy solutions through their partnership with energyRe, a firm focused on renewable energy projects. This unique combination sets Related Digital apart from other developers in the industry, allowing it to execute significant projects efficiently and effectively.

The company’s first major data center project is set to take place in Ontario, Canada, consisting of a pre-leased 64-megawatt data center designed to serve a major hyperscale customer, which is scheduled for delivery in the upcoming summer. With over 5 gigawatts of near-term power capacity planned across the United States and Canada, Related Digital is positioned to support its partners in scaling up their data center capabilities rapidly.

One of the notable developments within Related Digital’s portfolio includes a state-of-the-art campus along the Lake Michigan shoreline in Chicago, which is set to host the Illinois Quantum Microelectronics Park (IQMP). This facility will feature a significant data center with a capacity of 1 gigawatt and is aimed at facilitating advancements in quantum computing.

As the digital landscape continues to transform, the demand for reliable and accessible data centers is skyrocketing. Jeff T. Blau expressed that this segment of the market is one of the most remarkable growth areas in his 35 years of real estate development experience. He pointed out that Related Digital aims to be one of the few developers capable of addressing this formidable challenge, leveraging extensive capabilities across development, infrastructure construction, and supply chain procurement.

To further bolster its team, Related Digital has appointed several advisory board members, including industry veterans with extensive backgrounds in digital infrastructure and renewable energy. This strategic move enriches the company's knowledge base and reinforces its commitment to becoming a leading player in the data center sphere.

As Related Digital accelerates its growth strategy, significant efforts are underway to ramp up engineering, operations, and other crucial areas to ensure swift execution of its ambitious project pipeline. The company anticipates an exciting future filled with growth opportunities as it aims to shape the future of digital infrastructure and meet the surging demand for data solutions from technology giants around the world.

With a comprehensive approach that integrates multiple aspects of real estate and infrastructure development, Related Digital is poised to redefine standards in the data center industry, marrying innovation with robust execution plans to fulfill the needs of its partners and clients. The future looks bright for this emerging entity in the rapidly growing digital market.